There are three pretty distinct phases in any remodeling project: Plan, Design, and Execute. Finding a contractor is a part of the last step - not the first. Planning is the key to success.

DEFINE YOUR GOALS

Don’t just pretty it all up. While you’re at it, solve some design problems too. What do you want to accomplish? Setting goals will help you sift through thousands of tempting design ideas and pluck out those that will give you the best return on your investment.

EVALUATE YOUR PROPERTY AND YOUR NEIGHBORHOOD

The more you know about your house and your neighborhood, the more effectively you can plan your project. Find out exactly what you own: look closely at your deed and property survey. There may be a few surprises there. Get a good home inspection. Check your home for health hazards like asbestos, radon and lead-based paint. Find out if your home has historic significance. Review the zoning ordinances to see if you’ll be allowed to do what you’re planning. Find out what is in your local government's 5-year plan to find out if your area is about to experience some changes. Talk to the building inspections department: find out where the developers are about to build. You may find both obstacles and opportunities in this research, but whatever you find, it will surely help you avoid costly mistakes down the road, and you will be able to design your project for maximum return on your investment – on the first try.

DETERMINE WHAT YOU DO AND DON’T LIKE ABOUT WHAT YOU HAVE

Make two lists: Things I Like and Things I Don't Like (about my house). After a few weeks of being super-aware of how you use your space, you'll have made some pretty good understanding of your most important design challenges.

LOOK FOR SOLUTIONS TO YOUR PARTICULAR DESIGN PROBLEMS

Now that you've defined some of the problems, begin looking for solutions. Clip out pictures of great ideas from design magazines. You'll want to take a file-full of ideas to your designer to help her understand what you like. Don’t try to come up with a final solution. This exercise is as much to inform you of your options as to help you begin selecting materials. Preparing a package of photos of what you like will inform your designer of your preferences pretty quickly, and that will get you the best possible design in the shortest possible time, and save you some money on the design fees too.

ESTABLISH A PRUDENT BUDGET

Consider how you want to balance the tangible vs. the intangible returns on your remodeling investment. The longer you intend to stay, the more you can afford to invest in changes that just make you happy. If you’re going to be leaving in a few years, you may want to limit yourself to changes that will pay you back when you sell. Be careful about investing more in the house than your neighborhood warrants.

SET ASIDE MONEY FOR SURPRISES

Once you’ve established the maximum amount you are willing to spend (your Total Project Budget) set aside 10% for professional fees and loan closing costs to establish the Total Construction Budget. Then set aside 20% of the Total Construction Budget for surprises that will inevitably crop up once the contractor begins opening up your walls and floors. Use the remaining money as your Design Budget and negotiate a construction contract that doesn’t exceed that Design Budget. As you uncover those surprises, you’ll spend that 20% contingency. If you use this system of budgeting, you can be reasonably sure you won’t exceed your initial Total Project Budget when you’re finished.

MORE INFORMATION

You’ll find lots more information about the home remodeling process in Managing a Renovation: Staying in Charge and Out of Trouble, our friendly and comprehensive homeowner’s guide to remodeling project management. Download the table of contents and a sample chapter, or go to the order form to purchase it.

We offer ready-to-use construction forms, including a complete remodeling contract, in our Bookstore, as well. Have a look.

And, you may want to look at our list of More Resources for some great design ideas.

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